ICBA responds to CFPB actions amid talks on consolidating bank regulators

The Independent Community Bankers of America (ICBA) has responded to recent media reports concerning the Consumer Financial Protection Bureau (CFPB) and the potential consolidation of banking regulators. ICBA President and CEO Rebeca Romero Rainey emphasized the importance of community banks in providing a secure means for Americans to conduct financial transactions, with deposits insured by the FDIC and backed by the U.S. government.

"Community banks—and the banking system as a whole—provide Americans with a safe and trusted means to conduct financial transactions, with deposits insured through the FDIC and backed by the full faith and credit of the U.S. government. Any changes to its structure must involve careful study and input from all stakeholders, including community banks," stated Rainey.

She highlighted that community banks play a crucial role in funding the FDIC Deposit Insurance Fund and Federal Reserve oversight through assessments. Rainey expressed support for efforts aimed at enhancing efficiency across federal banking regulatory agencies but stressed that supervision changes should ensure a level playing field for community banks without compromising ICBA's goal of creating a tiered regulatory system.

"As the key stakeholders that fund the FDIC Deposit Insurance Fund and Federal Reserve oversight through assessments, community banks support efforts to enhance efficiency across the federal banking regulatory agencies. Any changes in supervision must ensure that community banks have a level playing field and that one-size-fits-all regulation does not compromise ICBA’s goal to create a tiered regulatory system," she added.

Rainey also mentioned ICBA's intention to collaborate with Congress and the Trump administration on reducing regulatory burdens while implementing necessary reforms in federal banking policy. The organization supports reforms aligned with its "Repair, Reform, and Thrive" initiative, which aims to maintain economic viability for community banks.

"We look forward to working closely with the 119th Congress and Trump administration to address excessive regulatory burdens and implement needed reforms to federal banking policy. We continue to support reforms that are consistent with ICBA’s ‘Repair, Reform, and Thrive’ initiative and ensure the economic viability of community banks and their customers," she said.

The statement concluded by underscoring ICBA's commitment to preserving independent banking regulators while ensuring community banks can meet local communities' needs effectively.

"While preserving the independence of banking regulators and our nation’s dual banking system are fundamental, these important reforms will help ensure community banks can continue meeting the banking needs of local communities."

The Independent Community Bankers of America focuses on fostering an environment where community banks can thrive through advocacy, education, and innovation. They aim to channel deposits into local neighborhoods, creating jobs, promoting economic prosperity, and supporting customers' financial goals.